March 20, 2024
For the first time in two decades, US buys more from Mexico than China

At the height of the pandemic, when global supply chains were disrupted and shipping costs soared almost twenty times, they saw this as an opportunity. In 2021, there was a request to establish links with companies that want to move production from China to Mexico. One of these turned out to be Hisun, a manufacturer of practical off—road vehicles and vehicles for outdoor activities.

Why Mexico? One of the main reasons is the growing trade tensions between the United States and China. Thus, for the first time in 20 years, Mexico surpassed China and became the main source of official imports of the United States.

The U.S. trade deficit with China narrowed significantly last year, with imports from the country falling by 20% to $427.2 billion, according to data, provided by U.S. Census Bureau and U.S. Bureau of Economic Analysis. American consumers and businesses have turned to Mexico, Europe, South Korea, India, Canada and Vietnam for auto parts, shoes, toys and raw materials.

Mexico’s exports to the United States were about the same as in 2022 and amounted to 475.6 billion US dollars.

We see how relations between Washington and Beijing are changing entire trade chains. Which companies will continue to participate in this process? We are all watching together!